Correlation Between Royal Unibrew and Tryg AS
Can any of the company-specific risk be diversified away by investing in both Royal Unibrew and Tryg AS at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Royal Unibrew and Tryg AS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Royal Unibrew AS and Tryg AS, you can compare the effects of market volatilities on Royal Unibrew and Tryg AS and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Royal Unibrew with a short position of Tryg AS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Royal Unibrew and Tryg AS.
Diversification Opportunities for Royal Unibrew and Tryg AS
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Royal and Tryg is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Royal Unibrew AS and Tryg AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tryg AS and Royal Unibrew is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Royal Unibrew AS are associated (or correlated) with Tryg AS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tryg AS has no effect on the direction of Royal Unibrew i.e., Royal Unibrew and Tryg AS go up and down completely randomly.
Pair Corralation between Royal Unibrew and Tryg AS
Assuming the 90 days trading horizon Royal Unibrew AS is expected to generate 1.68 times more return on investment than Tryg AS. However, Royal Unibrew is 1.68 times more volatile than Tryg AS. It trades about 0.03 of its potential returns per unit of risk. Tryg AS is currently generating about 0.03 per unit of risk. If you would invest 46,095 in Royal Unibrew AS on September 1, 2024 and sell it today you would earn a total of 7,055 from holding Royal Unibrew AS or generate 15.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.78% |
| Values | Daily Returns |
Royal Unibrew AS vs. Tryg AS
Performance |
| Timeline |
| Royal Unibrew AS |
| Tryg AS |
Royal Unibrew and Tryg AS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Royal Unibrew and Tryg AS
The main advantage of trading using opposite Royal Unibrew and Tryg AS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Royal Unibrew position performs unexpectedly, Tryg AS can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Tryg AS will offset losses from the drop in Tryg AS's long position.| Royal Unibrew vs. ROCKWOOL International AS | Royal Unibrew vs. Tryg AS | Royal Unibrew vs. DSV Panalpina AS | Royal Unibrew vs. GN Store Nord |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |